The U.S. Federal Reserve is set to announce its latest interest rate decision at 2:00 a.m. Beijing time on July 30. Although a Reuters survey showed that all economists polled expect the Fed to keep rates unchanged, money markets are still pricing in a roughly 32% probability of a rate hike this week and anticipate a total tightening of about 42 basis points this year.

Analysts note that market uncertainty surrounding this meeting is at its highest level in years. Jonathan Pingle, chief U.S. economist at UBS, said his level of uncertainty regarding the upcoming Fed decision is the highest it has been in 20 years. JPMorgan Chase estimates that if the Fed were to unexpectedly raise rates by 25 basis points, the S&P 500 could fall by 1.5% to 2%.